Dan Carpenter: Speedway has earned a break

Feb. 11, 2013

Indianapolis Motor Speedway. / Greg Griffo, Star 2012 file photo

Taxpayers might be inclined to exclaim "Et tu, Speedway" in light of the decision by Indiana's most venerable sports institution to seek state help with improvements after more than a century of eschewing direct public subsidies.

Yet, while it is a bit of a disappointment to see the Indianapolis Motor Speedway diminish as a counterexample to the occupants of other local sports venues, it is difficult to begrudge the Hulman family the favor it's asking of the legislature.

After all, the home of the Greatest Spectacle in Racing made Indy a global brand long before the Colts, Pacers, Fever and Indians existed, and has contributed multiple Super Bowls' worth of value to the state's economy.

All this, so far, with no government support for its sprawling facility or its operations; unless, perhaps, one counts the army of police and other first-responders on race days.

The owners are asking the General Assembly to approve the creation of a taxing district to capture existing state sales, income and corporate taxes in an area that includes the Speedway. The collected taxes, up to $5 million a year, would be channeled to projects at the track. The Speedway also would kick in $2 million a year.

The plan, which as proposed would continue for 20 years, resembles a commonly used economic stimulant for parts of cities deemed ripe for special attention. The stated uses for the money, from upgrading restrooms to installing lights for nighttime events to meeting federal demands for handicapped access, seem eminently worthy of investment as ways to attract more fans, more revenue and more spinoff business and jobs.

Furthermore, the sum sought is a bargain compared to what the taxpayers have laid out for Lucas Oil Stadium, Bankers Life Fieldhouse, Victory Field and the demolished RCA Dome and Market Square Arena.

Unexpected additional millions in costs arose in both the Lucas construction and the Pacers' owner's request for operations relief, and the public shouldered both. By contrast, the Speedway picked up its own tab in recent years for hugely expensive upgrades for Formula One and MotoGP as the historic oval adapted to change.

More change is needed. The request for help is reasonable. The precedent has been set, the dues paid. Lawmakers should wave the green flag.